Derek is a cash basis taxpayer. He sold 100 shares of Zinc Inc., stock for $20,000. The cost to him was $1,000. Shortly before Derek sold the stock, Zinc Inc. decided to distribute unneeded assets to its shareholders. Therefore, Zinc Inc. declared a large dividend. Derek would have been entitled to a $10,000 dividend, but he sold his shares after the dividend declaration date and before the record date. What are the effects of the stock sale and the dividends on Dereks gross income?